Inquiry into purchase of Crafar farms re-launched

The Overseas Investment Office has re-launched an investigation into the purchase of four farms previously owned by Crafar family interests.

The farms in southern Hawke's Bay, Taranaki and Manawatu were purchased in February this year by companies with links to Chinese businesswoman May Wang, who also wants to purchase 16 other Crafar farms in receivership.

The companies are UBNZ Assets Holdings and UBNZ Funds Management.

The Overseas Investment Office says it carried out a preliminary investigation in February, which it put on hold until a retrospective application was made. However, no application for consent to buy the farms has been received.

Under law, consent from the office is required by people from overseas intending to purchase sensitive New Zealand land.

The Overseas Investment Office says part of the investigation, expected to take several months, will involve establishing whether a breach of the Overseas Investment Act has been committed.

However, May Wang says she is confident the purchase of the four farms was within the law as she is a New Zealand citizen and, as the company UBNZ is 80% owned by the New Zealand-based UBNZ Trustee Company, the purchase complies.

She says the investigation could slow down the remainder of the overall deal, which would invest up to $1.5 billion in the New Zealand dairy industry.

Ms Wang says if New Zealand does not want the investment, her company will take it elsewhere.